JPMorgan upgrades Crown Holdings stock rating on valuation

JPMorgan upgraded Crown Holdings' stock rating from Neutral to Overweight, citing its attractive valuation. Analyst Jeffrey Zekauskas set a price target of $121.00, reflecting 8.6 times estimated 2026 EBITDA and 8.1 times estimated 2027 EBITDA. The shares were trading at $111 at the time of the upgrade, down 8% since late July, while Ball fell 9% compared to a market that rose 3%.

Crown Holdings offers an estimated free cash flow yield of 7% to 7.5% over the 2026-2027 period. The stock trades at a P/E ratio of 15.93 and a PEG ratio of 0.32, suggesting a compelling valuation relative to growth. According to InvestingPro analysis, the company appears undervalued, with its financial health score rating it as "Great."

JPMorgan expects Crown to increase beverage can volumes by 4% to 4.5% this year, with higher growth anticipated in the Asia/Pacific region and a potential 2% incremental boost to North American beverage volumes from the World Cup. The stock often benefits from short-term momentum due to consolidated volume growth growth, which should continue into the third quarter of 2026.